Vietnam Cracks $400M Crypto Scam Targeting 138000 Investors

Vietnamese authorities have dismantled a massive cryptocurrency scam that defrauded more than 138,000 investors across the country. With nearly $400 million in stolen funds and a trail of real estate purchases, digital wallets, and referral schemes, the case is now among the biggest crypto-related frauds in Southeast Asia.

Matrix Chain: A Fraud Wrapped in Blockchain Hype

The scam operated under the guise of a fake cryptocurrency platform named Matrix Chain (MTC). Created by a group led by Nguyen Quoc Hung, the platform mimicked legitimate crypto exchanges but was actually a cleverly disguised multi-level marketing (MLM) scheme.

Participants were promised high monthly returns and were encouraged to invite others into the system, making it appear self-sustaining. The platform required a small fee with stablecoin—1 USDT via the SafePal wallet system—to onboard new users. The low entry barrier added to the illusion of legitimacy while enabling rapid user growth.

In just months, MTC attracted 138,000 users and accumulated 394 million USDT, equivalent to nearly 10 trillion VND ($400 million). The majority of the funds were never invested or traded but instead funneled directly into the pockets of the scheme’s creators.

The Rise and Collapse of a Crypto Illusion

The platform’s appeal rested on its referral structure and "guaranteed" rewards. Users who recruited others were promised additional commissions. Early investors were even allowed to withdraw small profits—standard bait in Ponzi-style operations.

As new deposits poured in, the scam’s operators poured money into flashy marketing campaigns and extravagant events. This helped them attract more participants and deepen public trust. The fraudsters targeted smaller investors across rural and urban Vietnam who were unfamiliar with crypto mechanics but eager for financial gains.

According to investigators, around 55% of the funds were used by the group for personal luxuries. The rest was spent on growing the platform’s footprint: online ads, local promoters, and events that gave the platform a "professional" look.

Laundering Millions Through Real Estate

Once the platform reached peak inflow, the group began converting the funds into hard assets. Authorities discovered that a significant portion of the stolen crypto was laundered through real estate purchases in northern Vietnam.

The operation involved multiple wallets created under fake identities, making it difficult for investigators to track the transactions. Dummy accounts were used to move money across exchanges and wallets to cover the tracks.

Police have now seized properties, digital wallets, and bank accounts linked to the suspects. While these recoveries mark progress, tracing all the stolen funds remains a challenge.

A Breakthrough in Vietnam’s Cybercrime Enforcement

The case represents a landmark moment for Vietnam’s cybersecurity units. Led by Dong Nai Provincial Police, with assistance from the Ministry of Public Security, the investigation lasted over 200 days.

Coordinated raids in multiple provinces led to the arrest of five key suspects, including ringleader Nguyen Quoc Hung. The arrests came just days before the 80th anniversary of the People’s Public Security Force, marking a symbolic win for law enforcement.

Authorities say the investigation is ongoing, with efforts now focused on tracing the stolen funds, identifying additional suspects, and bringing closure to tens of thousands of victims.

Not an Isolated Case

Vietnam’s crypto scam crackdown comes just days after another high-profile arrest. In Thailand, police apprehended Ngo Thi Theu, also known as Madam Ngo, a Vietnamese national wanted by Interpol. She was allegedly behind a $300 million crypto and forex fraud that affected over 2,600 victims.

Ngo’s scheme bore striking similarities to the Matrix Chain fraud. Investors were lured with promises of 20–30% monthly returns through professional-looking presentations, seminars, and influencer-backed promotions. It operated across 44 fake call centers spread throughout Vietnam and into Cambodia, employing over 1,000 staff.

The operation was led by a Turkish national, with Ngo playing a central role in promotions, fund collection, and laundering activities. Even while hiding in Thailand, she allegedly continued receiving money via mule accounts, withdrawing funds in small batches to avoid detection.

Upon her arrest in Bangkok, Ngo admitted to laundering her portion of the funds into Vietnamese real estate. Her two bodyguards were also detained for visa violations and are now under investigation.

The Real Cost

The Matrix Chain and Ngo Thi Theu cases expose a deeper problem within the regional crypto space—a lack of regulation and digital literacy that enables fraud to flourish.

These scams were not run by tech-savvy hackers. They were built on old-school manipulation, shiny websites, referral games, and social engineering. The use of blockchain was minimal, just enough to look credible to outsiders.

This hurts not just the victims but the broader crypto industry, especially in Southeast Asia, where adoption is rising but regulation remains patchy. These scandals undermine public trust, scare away new investors, and draw greater scrutiny from regulators.

The challenge ahead is twofold—educate the public and build real guardrails for crypto activity. As fraudulent schemes evolve, so must the legal and cybersecurity frameworks around them.